Question

Lord Cornwallis improved trade and commerce by _____.

• A. Inviting traders from other countries to trade with Indian traders
• B. Attacking the trade centres
• C. Reviving the old practice of making direct contact with merchants
• D. Charging heavy taxes on foreign traders

Answer 1

The correct option is C Reviving the old practice of making direct contact with merchants

• Cornwallis took some steps for the improvement of trade and commerce. Since the establishment of Board of Trade at Calcutta, the company had procured goods through European and Indian contractors. These contractors often supplied goods at high prices and of low quality. Cornwallis stopped the practice of procuring supplies through contracts and started the practice of procuring supplies through Commercial Residents and agents.
• These Commercial Residents fixed the prices of goods with the manufacturers and also made advances to them. Cornwallis reduced the members of the Board of Trade from eleven to five and placed it under the control of the Calcutta Council. He also issued instructions that the merchants would not be oppressed.